Fiat's cute 500 has pretty much cornered the market for designer urban cars, thanks to its combination of style and affordability.

It looks as charming on the inside as it does on the outside, while its dinky dimensions combine with light steering to make it feel right at home in the city.

A 2015 update brought refreshed styling, a new entertainment system and more personalisation options.

Space 6/10

Space for four, but boot is quite small

There’s plenty of leg and head room in the front. And two adults will fit in the back as long as the people in front aren’t especially tall.

Sadly, you can’t have the 500 with rear doors unless you go for the much bigger 500L or 500X models, so getting people in and out of the back in the first place isn’t as easy as it is in aHyundaii10 or a five-door VW Up.

The boot is slightly bigger than a Mini’s and will take a small case or a few bags of shopping. But the i10 and Up are better choices if boot space is a priority. They have more in-car storage than the 500, too.

Comfort 5/10

Limited seat and steering wheel adjustment

Some people will struggle to find a comfortable driving position in the 500 because the steering wheel doesn’t adjust for reach and the ratchet lever on the side of the seat base alters only its angle, not its height.

The 500 can also feel a touch on the firm side around town, with deeper potholes sending shudders through the interior. However, the ride does improve with speed.

Wind and road noise are pretty well controlled at all times, and as long as you’re not in a hurry, the 1.2-litre petrol engine offers all the performance you'll need.

Book a free Fiat 500 home test drive

Dashboard layout 9/10

Simple to use and looks great

The 500′s dashboard is painted to match the exterior colour of the car, while mock-Bakelite inserts for the stereo and heater add to the retro charm.

Fortunately, this eye-catching design doesn’t come at the expense of usability because all of the switches and knobs are easy to understand.

The range-topping Lounge spec adds a touchscreen entertainment system that's optional on the cheaper Pop and Pop Star models. It’s a bit of a stretch to reach, but is quick, simple, and wonderfully intuitive to use.

The interior plastics don’t feel as classy as they look, but then this is a cheap car.

Easy to drive 9/10

Makes a fine town car

If you do most of your driving in town you’ll love the 500, because its small size and light steering combine with good all-round visibility to make it easy to manoeuvre and park.

The 0.9-litre "TwinAir" petrol engine offers more low-down shove than the 1.2, especially in its more powerful, 105 form – but it’s quite a bit more expensive to buy, and noisy, too.

You can specify an automatic gearbox if you go for one of the petrol models, but the diesel is available only as a manual.

Fun to drive 6/10

Plenty of grip; steering could be better

The 500 grips well in bends and never feels like it’s lurching around in an uncontrolled way. Unfortunately, its steering feels rather imprecise on faster roads, making it tricky to judge just how much you need to turn the steering wheel.

The turbocharged 0.9-litre petrol car makes a more appealing noise than the 1.2-litre petrol and the diesel, and the more powerful version of this "Twinair" engine also comes with a "Sport" button that makes the steering more responsive. However, both Twinairs send too much vibration into the car.

Choose one of the 500C models and you get a full-length retracting fabric roof that lets you make the most of the sun.

Reliability 5/10

Reasonable, but no more than that

Fiat was given a below-average score in the 2015 JD Power dependability survey. However,Citroen and Mini, the brands behind two of its main rivals, did only slightly better.

The 500 comes with a three-year warranty that has an unlimited mileage, which is better than the 60,000-mile limitation you get on the DS 3 and Mini Hatch. And while the Hyundai i10 betters the 500 here, getting a 100,000-mile warranty with a five-year time limit, Hyundai's JD Power score was the same as Fiat's.

Fuel economy 6/10

Not as good as the official figures suggest

Officially, the Fiat 500 is available with two engines that average more than 70mpg: a turbocharged 0.9-litre petrol and a 1.3-litre diesel. However, in reality, you’ll struggle to get even 40mpg out of the petrol.

The diesel gets much closer to its official figure in real-world conditions – mid-50s are easily achievable in a mix of town and motorway driving.

Alternatively, there’s a 1.2-litre petrol engine that averages mid-40s in the real world, and a 1.4-litre turbo petrol that should be capable of mid-30s.

The economy figures that you can get out of the 1.2-litre petrol and 1.3-litre diesel are comparable with those of rival hatchbacks.

Affordability 8/10

Cheap to lease and holds its value well

The Fiat 500 might be stylish, but you pay a premium for that style – it’s quite a bit more expensive than the similarly-sized VW Up and Hyundai i10, both of which are arguably less fashionable, but better all-round cars.

That said, it’s cheaper – and probably more desirable – than the fashion-orineted VauxhallAdam, as well as the larger DS3 and Mini.

The 500 should also hold its value pretty well, which is probably one reason why it’s remarkably cost-effective to lease.

Safety 7/10

Like the Mini hatchback, the 500 was awarded the maximum five-star rating when it was crash tested by car safety specialists Euro NCAP.

This was under the 2011 scoring system, which was less stringent than the current one, but we’d still expect the 500 to do well if it were tested again today because it’s stuffed with airbags.

The one disappointment is that there isn’t even the option of a system that can detect an imminent head-on impact and apply the brakes. You can specify such a system on the VW Up, the Mini and the DS3, among others.

Standard spec 6/10

You don't get much as standard in the cheapest version

The cheapest version of the 500 is the Pop, which comes with a USB connection and remote door locking, but little else.

It’s a better bet to upgrade to the Pop Star model, which gets you air conditioning, alloy wheels and a rear seat that can be folded down in two parts. It’s a shame there’s still no Bluetooth hands-free phone connection or digital radio at this level, though.

For that, you need to add it as an option, or upgrade to the Lounge model. This also gets a fixed glass roof, rear parking sensors, a touchscreen entertainment system and a leather steering wheel.

Our favourite version

1.2 Pop Star, list price £11,925

Options you should add Metallic paint (£460) and touchscreen radio with Bluetooth, aux-in and DAB (£350)

The verdict 7/10

If you want a car of this size, there are far better all-rounders out there in the shape of the VW Up and Hyundaii10. But if you’re after a city car that’s chic and feels special to own, the Fiat 500 is hard to beat.